Goldman Sachs (GS) CEO says as the quarter progressed, the macro environment started to weigh on sentiment

Goldman Sachs' CEO highlights that the macro environment is impacting market sentiment and execution in IPOs.

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  • Market conditions tempered execution for IPOs and sponsor activity broadly, GS believes that activity levels will rebound once conditions stabilize.
  • Feels good about the long term opportunity in private credit and its ability to deliver attractive risk adjusted returns for clients; 30yr track record, "rigorous underwriting", net inflows of more than 7% into largest non-traded BDC this quarter, and patient deployment via predominantly institutional drawdown structures.
  • Spreads are becoming more lender-friendly in private credit.
  • CEO says it has significant runway to further scale private credit business toward our USD 300bln target

CFO

  • Accelerating investments in cloud migration and in the accuracy, completeness, and timeliness of its data.
  • Will continue to dynamically deploy capital to support client franchise, while also returning capital to shareholders.
Context

While current conditions may be challenging, management is optimistic about the private credit sector, pointing to strong client inflows and a robust growth strategy, which could bode well for risk-adjusted returns as conditions stabilize.

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